As all parents are all to aware – raising children in this day and age is becoming ever more demanding – financially in particular. From even before they are first born, the expenses start totting up… and there is no set end date to the end of your parental duties!
It can be quite overwhelming the thought of being able to do your best financially for your children, though to get you started on some basics, here are a few simple strategies to get in place for families that are growing:
The Household Budget
After carefully totaling how much cash is coming in, you make a budget according to what you could manage and can track the outgoing expenses. This should always be a first step. From there stop and think what could be done in order to improve the budget? Its usually cutting down on any expenses that seem less necessary.
Have a crisis fund
Make sure that you set aside a fund for any emergency crisis occurring when developing your budget for the family. You never know when the car might need repairs etc, and its essential to have money put aside for the unexpected as then there isn’t the panic of where to get an extra £250 for example. Just £20 a month put aside can almost cover that amount in just 1 year of saving.
Know what things are essential spending when it comes to the kids
Its all too tempting to want to buy every cute toy etc you can get your hands on, but really think about how many toys and clothes your child actually needs. They outgrow both things very quickly, and you’ll find most parents regret the amount they buy afterwards. They are also more likely to appreciate the things they do actually have then!
Plan for their further education
Its not free anymore so set aside something, however small, for further education or even driving lessons etc. A small amount regularly adds up over the years and will make a lot of difference at the time. Choose saving accounts wisely, think about interest rates and take advantage of any tax free allowances you each are entitled to.
Think about your future too
Think about retirement plans, life insurance and a will too. It all seems so far off when you are young and have small children, but the time will come and its best to have been financially prepared.